The European

Learning Objectives
Importance of European Union membership to
Ireland
European Commission and European Parliament
Council of European Union/Council of Ministers
European Court of Auditors and European Court of
Justice
Challenges and opportunities in the EU market for
Irish business

Importance of European Union membership to

Ireland
1. Large market
The EU is a trading bloc made up of 27 countries with a
population of half a billion people. Irish firms have huge
opportunities for exporting and expansion.

Importance of European Union membership to

Ireland
2. Free-trade area
The EU is a free-trade area where there is free movement of
goods, services, capital and labour.

Importance of European Union

membership to Ireland
3. Economies of scale
The EU provides a huge market for the products of Irish firms.
Economies of scale can be achieved through expansion into
these markets.

Importance of European Union

membership to Ireland
4. EU grants and supports
The EU has given Ireland many grants to build infrastructure
such as roads, airports, etc. Supports to Irish agriculture under
the Common Agricultural Policy have increased farm incomes
and improved living standards in Ireland.

Importance of European Union

membership to Ireland
5. Common currency
Countries in the Eurozone including Ireland have a single
international currency, the Euro. This has made trade and
travel easier and has eliminated the cost of currency
conversion.

European Commission
The Commission deals with the day-to-day administration of
the EU.
The Commission consists of one member from each EU
country.
Each Commissioner has responsibility for a particular EU policy
area.
The Commission must act in the best interests of the EU and
independently of member states.

Functions of the European Commission

Drafts proposals for new EU laws.
Make sure existing EU laws are implemented and obeyed.
Implements agreed policies of EU (e.g. Common Agriculture
Policy, Competition Policy).
Manages and supervises the EU budget.
Represents the EU internationally.

European Parliament
Members of European Parliament (MEPs) are elected by the
citizens of the EU to represent their interests.
The parliament has 785 members from all 27 countries.

Functions of the European Parliament

Discusses proposal new laws and proposes amendments.
Approves the annual EU budget and monitors spending.
Supervisory powers over other European institutions vets
members of the European Commission and votes on whether
to accept the new Commission or not.

Council of European Union/Council

of Ministers
The EUs main decision-making body The Council must adopt
all legislation before it becomes law.
The Council is comprised of ministers from the governments of
each EU member state.
The topic on the agenda determines which minister attends.

European Court of
Auditors
The council of Auditors is based in Luxembourg. It has one

member from each country appointed for a term of six years.

European Court of Justice

The Court of Justice is based in Luxembourg. It has one judge
per member state.

Impact of Common Agricultural

Policy on Ireland
The objectives of the common agricultural policy were:
1. To make the EU self-sufficient in food.
2. To improve farm incomes and to ensure a fair standard of
living for the agricultural community.
3. To increase productivity.
4. To stabilise markets and regulate prices.
5. To ensure reasonable prices for consumers.
6. To provide access to a large EU market.

Common Fisheries Policy (CFP)

The common Fisheries Policy is an EU policy covering all
aspects of fishing in the EU. The main provisions of the
policy are:
1. To support the incomes of those involved in the fishing
industry.
2. To promote the conservation of Irish fish stocks.
3. To promote the marketing of fisheries products.
4. To monitor fishing activity.

Competition Policy
The aim of the Competition Policy is to ensure that there is fair
competition among businesses in the EU so that consumers get
a choice of quality goods and services at reasonable prices.

Competition Policy
1. Cartels
This restricts Irish businesses from forming anti-competitive
cartels which:
Fix prices or keep prices artificially high
Divide up the market
Prevent new firms entering the market

Competition Policy
2. Dominant position
Firms in a dominant position in the market cannot abuse that
position to charge excessively high prices, restrict smaller
competitors, or drive firms out of the market.

Competition Policy
3. Mergers and takeovers
The European Commission has the power to control mergers
and takeovers if it believes they would restrict competition or
create a dominant position.

European Union Social

Charter
1. The right to freedom of movement/the right to work in the

EU country of ones choice.

2. The right to a fair wage.
3. The right to equal treatment for men and women.
4. The right to health protection, safety at work and improved
working conditions.
5. The right to consultation and participation for workers.

Economic and Monetary Union (EMU)

The policy of the Economic and Monetary Union is designed to
meet two objectives:
The introduction of a single currency the Euro.
The creation of a single monetary policy for the European
Union to be implemented by the European Central Bank.

Benefits of EMU for Ireland

1.
2.
3.
4.
5.

Reduced business costs

No exchange rate ricks in the Eurozone
Price transparency
Lower interest rates
Lower inflation

Disadvantages of the EMU For Ireland

1. UK does not use the Euro.
2. Irish interest rates are set by the ECB.

The Single European

Market

The Single European Market removed barriers to trade among

member states in order to provide full and open competition
in both goods and labour within the EU.

Impact of the Single European

Market on Irish Business
1.
2.
3.
4.
5.

Free trade between member states

Free movement of capital
Free movement of people
Economies of Scale
Common external tariffs

Opportunities in the EU market for Irish business

1.
2.
3.
4.
5.

Free access to EU market for Irish exports.

Free movement of services, labour and capital.
Economies of scale.
EU financial assistance
Lower transport/distribution costs

Challenges in the EU market for

Irish business
1.
2.
3.
4.

High distribution costs

Competition
Public procurement
High cost base

Recap
Importance of European Union membership to Ireland
European Commission and European Parliament
Council of European Union/Council of Ministers
European Court of Auditors and European Court of
Justice
Challenges and opportunities in the EU market for Irish
business